The Retail Supply Chain Is Under Attack by Organized Criminals
The entire supply chain is under attack from organized crime groups

How Nike Sneakers Get Stolen at Every Turn

The company's warehouses, trucks and stores are regularly targeted by organized crime groups looking to steal and resell Air Jordans

It's getting harder for a pair of Air Jordans to make it all the way from the factory to a store shelf or your front porch. Nike goods have been stolen at almost every step of the supply chain, from distribution centers, rail yards and storage trains to FedEx delivery trucks, highlighting how retail crime goes beyond shoplifting or smash-and-grab thefts in stores.

"The supply chain is under attack right now," said Keith Lewis, vice president of operations for Verisk-owned CargoNet, a theft prevention and recovery network that often collaborates with law enforcement.

Nike, which generates more than $50 billion in annual sales, hasn't disclosed the amount of merchandise it loses to theft and declined to comment for this article.

The journey to the U.S. for a pair of Air Jordans starts at factories in Vietnam or China, where the sneakers are typically manufactured. The sneakers then have a winding path from Asia, with several stops at ports, warehouses and distribution centers before they arrive in stores or homes. A pair of shoes are at risk of being stolen at each stop, Lewis said.

Executives at retailers such as Target, Macy's, BJ's Wholesale Club and Ulta Beauty have blamed criminal networks for causing problems with their inventories and called it an urgent issue. Reports of cargo theft across the supply chain increased by 63% during the first half of 2023 compared with a year earlier, according to data from CargoNet.

Nike products became more attractive targets for criminals in recent years as reselling limited-edition sneakers turned into an easy way to make a profit. Air Jordans and other designs regularly change hands for hundreds of dollars above the original price.

In February, Nike offered to pay for off-duty and more on-duty police officers to address safety and theft concerns at a northeast Portland, Ore., store, which has been closed since last year. The Portland mayor's office said the proposal wasn't feasible given staff limitations.  wsj.com

   More Coverage of Nike's Theft Problem

   • Nike Grapples with Rising Organized Crime Theft in Supply Chain

   • Nike Products Stolen at Every Stage of the Supply Chain, Report Finds

   • Thieves are targeting Nike shoes across the supply chain


Retailers Call on Lawmakers to Pass Combating Organized Retail Crime Act
Washington retailers show support for federal legislation to combat ORC

Rep. Kim Schrier is co-sponsoring the "Combating Organized Retail Crime Act of 2023" to strengthen laws and create a new team to fight retail crime rings.

A piece of legislation highlighted Thursday aims to target organized retail crime, a problem the Washington Retail Association says costs businesses $2.7 billion a year statewide and puts employees and shoppers in danger.

US Representative Kim Schrier says the Combating Organized Retail Crime Act would create an organized retail crime center within the Department of Homeland Security (DHS) and direct DHS and the Department of Justice to direct grants and resources toward the problem.

"It also targets organized crime by strengthening federal money laundering statutes and penalties," Schrier said.

The Washington Retail Association (WRA) says businesses across the state are dealing with the impacts of crime rings, which resell items and often have connections to other illicit activity.

Carl Kleinknecht, President of the Washington Organized Retail Crime Association and Director of Security for Bellevue Collection, says there are some things businesses can do to increase the chance of offenders getting arrested and to help address the problem overall.

"Retail investigators are the ones that are going to notice the shoplift, they're also the first link in that chain of accountability because they have to put together a really good case backed up by video, backed up by statements, so when strapped police departments arrive, they can give the best possible evidence over to them so local law enforcement can refer those charges to the prosecutor's office," Kleinknecht said. king5.com

   More Coverage of Washington's Push for ORC Legislation

   • Rep. Schrier sponsoring bill cracking down on organized retail theft

   • Congresswoman tours Issaquah Target, touts organized retail theft legislation


More Hy-Vee Locations Deploy Security Guards
Part of the chain's retail security team to operate across eight states

Ask Us: Hy-Vee mum on armed guards

Mankato's Hilltop Hy-Vee has added armed security guards, something done previously at Hy-Vees elsewhere in the Midwest

With still no response from Hy-Vee after 10 days, Ask Us Guy dug around online and found several news reports from 20 months ago about the grocery guards.

"Customers at the Midwest grocery chain Hy-Vee will soon encounter armed security guards while shopping at stores in light of the recent surge in retail thefts," according to the Post story on Dec. 30, 2021. "The Iowa-based retailer unveiled plans Wednesday for the launch of a retail security team to operate at stores across eight states."

The Hy-Vee officials quoted by the Post and other news organizations at the time did not make any reference to the mass shootings that had occurred at retail stores - including a supermarket in Boulder, Colorado earlier in 2021 and at a Walmart in El Paso, Texas in 2019. But they did talk of hoping to deter violence and crime, including theft.

"While the chain has not said if a specific incident prompted the initiative, Hy-Vee Vice President of Security Jamie Sipes suggested in an interview that a recent uptick in retail thefts nationwide was a factor," the Post reported. "'I think across the country, we're seeing an increase in thefts and different crimes in retail locations,' Sipes told KYTV in Missouri.

The media reports stated that Hy-Vee promised to train the guards in de-escalation techniques and that many would have law enforcement backgrounds. Along with guns, some of the guards were armed with tasers.

The story in the Post noted that Hy-Vee's decision to add security guards came at a time when 57% of retailers had reported an uptick in "organized retail crime," including the brazen smash-and-grab robberies sometimes conducted by a swarm of thieves after they organized themselves in advance on social media.  mankatofreepress.com


NY Lawmakers Face Backlash Over Retail Crime
'New York's retail crime problems stem from lawmakers in Albany.'

The Impacts of Retail Theft
Here in New York theft under a thousand dollars is considered a misdemeanor that carries no jail time. Assemblyman Brian Miller, (R) 122nd District says it New York's retail crime problems stem from lawmakers in Albany.

"Those who are organizing and participating in retail thefts are essentially a revolving door of criminals with no consequences, which is a result of Bail Reform Laws implemented by New York State," he said.

If something isn't done to curb theft here in New York, curbside pickup may end up being the only way to get retail items. Assemblyman Brian Miller elaborates on how that could happen.

Local political representatives want the Governor to sign legislation establishing a task force that would provide independent expert opinions on the most effective ways to combat organized retail crime.

Local suggestions include retail networking, funding for additional security measures, local ordinances, and even public identification of known thieves.

"Albany has to say, 'Hey, listen, what are we going to do to protect these people,' because you know we got 16, 17, 18-year-old girls working in there. We do not want to put them in harm's way, and it becomes a safety matter, and until they make consequences for their actions this is going to continue."

The only changes Governor Kathy Hochul made to N.Y.'s Bail Reform Law eliminates the clause that forced judges to consider the "least restrictive" bail option. Now, judges can choose what they believe is "necessary to reasonably assure" a defendant's return to court.

Should the Governor sign legislation to create a task force, it would have one year to complete their study before presenting their findings to the governor, and the Attorney General. wktv.com


Will Anti-Theft Measures Alienate Younger Customers?
Stores risk losing younger shoppers with anti-theft measures targeting self-checkouts: retail expert
Amid a recorded rise in retail theft, companies are taking more measures at self-checkouts to stop people from stealing. Allowing customers to complete their own transactions can make shopping seamless and easy, but a retail strategist says self-checkouts are also an avenue for theft.

Liza Amlani, principal and co-founder of Retail Strategy Group, said that self-checkouts without additional measures are one of the ways thieves can easily steal from retailers.

"Customers want self-checkout, they don't want to be monitored, or security hovering over them," Amlani said. But some companies have started implementing more measures, particularly at self-checkouts, that can change the customer experience.

"The convenience of self-checkout, especially across the younger generations who prefer it, I think that's where retailers will really kind of lose customer loyalty and even market share," Amlani said.

HOW TECHNOLOGY CAN HELP DETER THEFT

New technology in tags, like radio-frequency identification (RFID), allows for a product to be tracked by the company throughout the supply chain.

"There's a lot of products out there that have magnetic traceability, like through RFID technology built into the product label," she said. "So it is possible for brands and retailers to track the journey of their product, especially from a theft and loss prevention perspective."

THE POPULARITY OF SELF-CHECKOUTS

The May 2021 survey shows 53 per cent of respondents said they would use a self-checkout machine in the future. While the new technology makes small purchases quicker for customers, one shopper points out how convenient cashiers still are. krdo.com


How is organized retail theft impacting businesses? What is shrink?

View from the Right: Are Democratic policies fueling a surge in crime?

Are Delivery Companies Responsible for Crimes Committed by Drivers?
She says a Doordash driver tried to rape and kill her. The company says it's not their problem.

She sued Doordash, but the delivery company says it's not responsible for its contractors.

According to an account laid out in criminal charging documents, a civil lawsuit, and interviews with Chloe and her attorney - Young forced his way inside, stripped off his pants, exposed himself, and tried to rape her. In the process, she said, he beat her, broke her nose, strangled her, and bit off four of her fingertips - two on each hand.

Young had a history of violence. In 2016, according to court records reviewed by Insider, Young pleaded guilty to charges of aggravated assault, hit-and-run, and driving without a proper license after he ran over a woman with a car following a verbal dispute. He served three years in prison and was out on parole while working for Doordash.

A grand jury in Coffee County, Georgia, where Chloe lives, brought a five-count indictment against Young over the incident at her apartment, charging him with attempted rape and attempted murder.

In a civil lawsuit filed against Doordash in November, Chloe is seeking to hold the company to account for what she experienced. She said she doesn't use the app anymore, nor other apps that use third parties for deliveries, like Seamless or Postmates. She stays away from other "gig economy" apps like Uber and Lyft as well, considering them an even greater safety threat.

Chloe is accusing Doordash of negligence, alleging the delivery company failed to conduct an adequate background check on Young. Doordash, the lawsuit says, should have never hired Young as a so-called "Dasher" or given him access to her home address.

According to Kendall Shortway, a lawyer representing Chloe, Doordash outsources many background checks to another tech company, Checkr. Shortway intends to add Checkr as a defendant in the case, she told Insider.  businessinsider.com


Another COVID Fixture That's Here to Stay
New York City Will Make Outdoor Dining Permanent, With Caveats

New rules passed by the City Council on Thursday will organize the haphazard but popular outdoor dining structures, but will force their removal in the winter.

Outdoor dining along New York City streets, one of the rare pandemic-era accommodations that proved popular, is set to become permanent - but in a way that could drive many restaurant owners to take down their streetside sheds for good.

Under a bill passed by the City Council on Thursday, restaurants will be allowed to continue to offer outdoor dining in roadways under a new licensing system. But those structures will have to be removed for the winter, and reconstructed in the spring - a requirement that some restaurateurs say will be a costly and onerous burden.

The bill, which has the support of Mayor Eric Adams, aims to strike a balance by retaining a popular al fresco program while regulating it more closely, allowing for the clearing of abandoned or ugly dining sheds.

Still, some restaurant owners have expressed outrage about having to remove and store outdoor dining structures from Nov. 30 until March 31, which will take away a dining option for patrons, especially those who are immunocompromised or otherwise Covid-conscious. Smaller restaurants in particular could find it too expensive or cumbersome to participate. nytimes.com


Will Automation Lead to More Retail Job Losses?
The robots are coming - and the companies building them are looking for workers

The sectors most likely to adopt robotics are electronics, energy tech and utilities and consumer goods, according to a 2023 report from the World Economic Forum.

There's no denying automation will eliminate certain jobs in the coming years. But as companies adopt robots on manufacturing floors, in kitchens and on delivery routes, workers have a growing opportunity to join the ranks in helping to build and implement the technology.

Both humanoid and nonhumanoid robots are set to reduce employment in the years to come, as nearly equal amounts of companies say they're expecting growth, worker displacement or a neutral effect due to the technology, according to the World Economic Forum's Future of Jobs Report for 2023 forecast. The sectors most likely to adopt robotics are electronics, energy tech and utilities and consumer goods, according to the study.

For example, the WEF study found 60% of companies operating in the production of consumer goods and the oil and gas industry project jobs will be lost due to automation. On the other hand, 60% of companies operating in information and technology services expect jobs to be created due to robots in the next five years. cnbc.com


Are Too Many Places Prompting for Tips?
Customers' patience is being tested as tipping has expanded well beyond full-service dining and bars to quick-service restaurants, retailers, grocers, and even airport self-checkouts.

One reason tipping requests have become more pervasive is touchscreen tablets, which businesses are increasingly using as point of sale (POS) systems. Setting up a tipping prompt digitally is easy and more effective than the traditional tip jar that can be ignored. retailwire.com


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